Fenwick eyes restructuring as losses widen
It is understood from the retailer’s filings at Companies House that it has been operating at a loss for the past six years
Fenwick has reportedly called in restructuring professionals from AlixPartners as it looks to address its mounting losses and cost pressures, according to The Times.
The news comes as the family-owned company, which operates a total of eight stores across the country, saw its pre-tax losses widen to £38.1m in the year to January 2024 from £28.4m in the previous year, following a 5.2% fall in sales.
It is understood from the retailer’s filings at Companies House that it has been operating at a loss for the past six years due to a combination of high inflation, increased costs, and challenging market conditions.
Fenwick’s attempts to return to profitability by reducing costs and improving its operating model, particularly in the online space, have reportedly been hindered by heavy discounting from competitors.
Fenwick recently launched a newly renovated 26,000 sq ft beauty hall in its Newcastle flagship store as part of its strategy to enhance in-store offerings and attract customers. This investment in physical retail comes despite the retailer’s financial difficulties, which have raised concerns about the future of its stores and employees.
A Fenwick spokesperson told The Times: “There are currently no plans for store closures, but we need to carefully monitor costs. Fenwick’s restructuring plans will focus on improving efficiency across both the physical and online operations.”
In 2022, the retailer sold its flagship Bond Street store for £430m. It used the money to bolster its balance sheet and invest in both its online business and other stores.
Fenwick has been approached for comment.